How Does a Decentralized Autonomous Organization (DAO) Govern a DeFi Derivatives Protocol?

A DAO governs a DeFi protocol by allowing token holders to vote on proposals related to the protocol's operation. These proposals can include setting risk parameters (e.g. margin requirements), upgrading the smart contract, or adjusting fees.

This decentralized governance aims to ensure transparency and prevent single-point control, though it can be slow and complex.

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